Compliance with European Consumer Law

Ensuring compliance with European Consumer Law is a pressing challenge for e-commerce traders, a topic explored in detail in my monograph, Compliance with European Consumer Law: The Case of E-Commerce (Oxford University Press, 2024). This book investigates the extent to which businesses meet their legal obligations under various European consumer protection frameworks and proposes evidence-based solutions to enhance compliance and enforcement.

My research focuses on 35 key legal obligations that stem from major European Directives, including the Unfair Contract Terms Directive, E-Commerce Directive, Consumer Rights Directive, and implementing national rules in the UK, France, Germany, and Netherlands. These obligations cover a wide range of issues such as unfair contract terms, information requirements, withdrawal rights, passing of risk, and (online) dispute resolution mechanisms. Using a novel and hand-collected empirical dataset (10,500 observations), I analyse how businesses implement these obligations and assess the effectiveness of existing regulatory measures.

Compliance in Practice: Findings from the Field

One of the central findings in my book is the significant variation in compliance levels among e-commerce traders. According to the empirical findings, less than 20 per cent of businesses adhere strictly to legal requirements, while others fall short (more than 80 per cent), either unintentionally or deliberately. Compliance differences exist in e-commerce sectors, jurisdictions, and company sizes. Surprisingly, even semi-public organisations—entities often assumed to have a higher capacity for legal compliance—struggle to fully meet these obligations when providing pre-drafted terms of service. This inconsistency highlights the complex regulatory environment that businesses must navigate and raises questions about the clarity and accessibility of consumer law.

Challenges of Regulation and Enforcement

A critical argument I develop in my book is the lack of an evidence-based approach that meets rigorous scientific standards in the formulation and enforcement of European consumer law. Too often, new rules are introduced without sufficient (empirical) evidence to support their design or predict their impact. This gap not only undermines the effectiveness of consumer protection measures but also places undue burdens on businesses, particularly small and medium-sized enterprises (SMEs), which may lack the resources to interpret and implement complex legal standards.

Recommendations for a Stronger Framework

In light of these findings, my book offers several targeted policy recommendations to improve compliance and enforcement in European Consumer Law, such as:

• Promoting compliant pre-drafted standard contract terms: By encouraging the use of legally compliant templates, regulators can help businesses—especially SMEs—navigate complex requirements more effectively. These templates would reduce the risk of inadvertent non-compliance and promote a more consistent consumer experience across the EU.
• Providing support for SMEs: Many smaller businesses face disproportionate challenges in understanding and applying consumer law. Tailored guidance, training programs, and financial incentives can bridge this gap, enabling SMEs to meet their obligations without excessive strain.
• Enhancing access to justice through online dispute resolution: Strengthening online dispute resolution mechanisms would benefit both consumers and traders by providing a cost-effective, user-friendly way to address conflicts. This approach could significantly enhance consumer confidence while reducing the burden on traditional courts. Traders typically opted out of the EU Commission’s ODR platform but into a semi-public national one, showing appetite for ODR but scepticism towards the EU one.
• Adopting an evidence-based approach in regulation and enforcement: Policymakers should prioritise the collection and analysis of (empirical) data to inform regulatory decisions. Evidence-based strategies would not only improve the design of consumer protection measures but also ensure that enforcement efforts are targeted and effective.

Broader Implications for EU Law and a Call for Evidence-Based Regulation

The challenges and recommendations outlined in my book have implications that extend beyond the specific context of e-commerce. They highlight the need for a more cohesive and scientifically grounded approach to EU law.

In conclusion, my monograph underscores the urgent need for a shift towards evidence-based regulation and enforcement in European Consumer Law. Such a framework would not only address the current compliance gaps but also ensure that consumer protection measures are robust, practical, and adaptable to the evolving digital landscape. By implementing the targeted policy recommendations I propose, regulators can create a more equitable and transparent environment for consumers and businesses alike.

As the digital economy continues to grow, ensuring compliance with European Consumer Law will remain a critical priority. My book aims to contribute to this ongoing conversation by providing a rigorous, data-driven analysis of the challenges and opportunities in this field and beyond.

The book is available here.

Felix Pflücke is a Postdoctoral Research Fellow in Law at the ADA Chair of Financial Law at the University of Luxembourg and a Stipendiary Lecturer in Law at the University of Oxford.